Part 8Miscellaneous

Payments from Exchequer accounts

158Power of Treasury to make payments

1

This section applies if a person makes a claim which, in the Treasury's opinion, is a financial claim that concerns an Exchequer account.

2

The Treasury may pay money from any Exchequer account—

a

to satisfy the claim (in whole or in part), or

b

to enable the claim to be satisfied (in whole or in part) from another government account.

3

The reference in this section to a financial claim that concerns an Exchequer account includes, in particular, either of the following cases.

4

The first case is where a financial claim relates to—

a

a case where money is paid into a government account, but the money should not have, or need not have, been paid into that account, or

b

a case where money should have been, or needed to be, paid out of a government account, but the money—

i

was not paid out of that account, or

ii

was paid out of that account, but not as it should have been, or needed to be, paid.

5

The second case is where a financial claim relates to the exercise of functions that relate to an Exchequer account (whether the functions are exercisable by the Treasury or another person).

6

In this section—

  • “Exchequer account” means—

    1. a

      the Consolidated Fund,

    2. b

      the Debt Management Account,

    3. c

      the Exchange Equalisation Account, or

    4. d

      the National Loans Fund;

    and a reference to an Exchequer account includes a reference to the assets or liabilities of the account;

  • “financial claim” means a claim (whether or not legally enforceable) for the payment of an amount of money, including a claim in respect of—

    1. a

      money paid or not paid by any person,

    2. b

      interest earned or not earned by any person, or

    3. c

      loss, costs or expenses incurred by any person;

  • “government account” means—

    1. a

      an Exchequer account, or

    2. b

      any other account in which money is held by or on behalf of Her Majesty's Government in the United Kingdom.

159Payments from certain Exchequer accounts: mechanism

1

This section applies to money to be paid under section 158 from—

a

the Consolidated Fund, or

b

the National Loans Fund.

2

In the case of the Consolidated Fund—

a

the Comptroller and Auditor General shall on receipt of a requisition from the Treasury grant a credit on the Exchequer Account at the Bank of England (or on its growing balance), and

b

an issue shall be made on orders given to the Bank by the Treasury in accordance with a credit granted under paragraph (a).

3

An issue made under subsection (2) shall be recorded in the daily account under section 15(5) of the Exchequer and Audit Departments Act 1866 (c. 39).

4

In the case of the National Loans Fund—

a

the Comptroller and Auditor General shall at the request of the Treasury grant a credit on the National Loans Fund, and

b

a payment out of the Fund shall be made by the Treasury in accordance with a credit granted under paragraph (a).

5

A payment made under subsection (4) shall be recorded in the daily account under section 1(2) of the National Loans Act 1968 (c. 13).